Pardee Homes has introduced an equity protection program that pays buyers if their home value drops between the time of purchase and the time of resale.
The nation's first production homebuilder to offer such a safeguard, Pardee has brought the program to specific homes of selected communities in its Las Vegas and Los Angeles regional markets.
"The equity protection program brings assurance to buyers who are concerned about possible future declines in new home pricing," said Rob Tuvell, regional director of sales for Pardee Homes. "We are helping to minimize uncertainties about buying the new home they want today."
Pardee is making the new equity protection program available through EquityLock Solutions of Greenwood Village, Colo., whose Home Price Protection provides this unique home equity security plan. It compensates the homeowner at resale for any decline in the local house price index as reported by the Federal Housing Finance Agency, whether the owner is selling the home at a loss or a gain.
As an added benefit, the Equity Protection Program includes monthly payments of $1,500 in the event of job loss, for up to 12 consecutive months.
While the cost of equity protection is usually assumed by homebuyers, with usual fees of 1 to 3 percent of home value, Pardee Homes is purchasing the protection contract for buyers on selected homes in the equity protection program. Coverage begins 24 months after close of escrow and extends for 15 years.
"The two-year waiting period reflects a very important value of the equity protection program," Tuvell said. "We are working to help homebuyers who are buying their new home to live in, not to use as a speculative financial tool."
According to Tuvell, the program has its roots with prominent economists who advocate equity protection to help address consumer confidence issues. These economists include Chairman of the Federal Reserve Ben Bernanke, who in 2008 called on the private sector to bring home equity protection to the market.
"EquityLock Solutions satisfied Pardee's critical considerations when looking at innovations in home design, construction or financing -- feasibility and reliability," Tuvell said. "We're delighted to work with this company as we implement the equity protection program and look forward to seeing its benefits to homebuyers in Southern Nevada."
Restrictions apply to the program and its mortgage relief feature. For additional details, visit pardeehomes.com and the blog post on this exclusive program.
One of the West's largest and longest-established home builders, Pardee has built homes and communities for more than 40,000 families in Southern Nevada since 1952.
Pardee neighborhoods now open for sales include Ashwood at Nevada Trails, Montclaire in Henderson, Solstice in Aliante, Solamar in Vista Verde, Riverstone in Prescott Park, Serrano in Mountain's Edge and Trail Ridge at Blue Diamond and Durango.
Priced from the $140,000s, every new home includes Pardee's award-winning LivingSmart standards that help conserve energy, improve indoor air quality, save water and reduce consumption of natural resources, according to Tuvell.
For information about Pardee neighborhoods in Southern Nevada, call online sales counselors at 604-3332 or visit Pardee's website at pardeehomes.com. You can also find Pardee on Facebook at facebook.com/PardeeHomesLasVegas.